Cabinet acts to improve services

(China Daily) Updated: 2006-11-16 07:03

The government will deepen the restructuring of the administrative system to
improve macro regulation, public services and fight corruption, according to a
release from a State Council executive meeting held Wednesday in Beijing.

The reform of the administrative system is a major task of the country's
political restructuring, said the release from the meeting chaired by Premier
Wen Jiabao.

Since 2002 the government has markedly enhanced its administrative capability
and it is now necessary to further improve its governance, the release said.

The State Council, China's cabinet, decided three major tasks for reform in
the near future:

First, improve institutions and mechanism of macro regulation, especially the
regulation of markets, to ensure fast yet steady growth of the economy.

Second, improve social management and public services and solve outstanding
problems in education, medical care, employment, social security and income
distribution to safeguard social equity and justice and ensure social harmony
and stability.

Third, enhance supervision to prevent abuse of power, and crack down on
bribery and other corrupt practices.

The State Council also called for controlling government funding for
reception expenses to combat waste and extravagance.

The State Council also issued new regulations on foreign-funded banks that
will take effect on December 11, the date China is expected to fully open its
banking sector to foreign competition.

The new regulations were signed by Wen.

The new regulations lift restrictions on yuan and foreign-currency
transactions by solely foreign-funded banks and Sino-overseas joint venture
banks.

Chinese branches of foreign banks, however, are banned from engaging in
renminbi services with Chinese citizens unless an individual, having obtained
the approval of the banking regulatory body, makes a fixed deposit of no less
than 1 million yuan (US$127,000).

Solely foreign-funded banks and joint venture banks must have a minimum
registered capital of 1 billion yuan or the equivalent in hard foreign
currencies. Chinese branches of foreign banks must have a minimum operating fund
of 200 million yuan or the equivalent in hard foreign
currencies.